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According to ANAM’s Environment Information<br />

System figures, <strong>desertification</strong> is taking hold at an<br />

alarming rate. In 1970 some 70% <strong>of</strong> the country was<br />

under forest cover but by 2011 this had been reduced<br />

to around 35%.The last in-depth report on the situation<br />

dates from 2000, and it shows that forest coverage<br />

in 1992 amounted to 49% <strong>of</strong> the country, but<br />

by 2000 (in just eight years) it had shrunk to 45%. 8<br />

Water pollution<br />

Environmental protection organizations have reported<br />

that important sources <strong>of</strong> fresh water near<br />

the Panama Canal valley have been polluted by the<br />

operations <strong>of</strong> two gold and copper mining projects in<br />

the Petaquilla and Molejones area, 100 km from the<br />

capital. These groups monitored the situation, and<br />

water and sediment from sources near the mining<br />

area were analysed. The tests showed that the water<br />

has high levels <strong>of</strong> suspended solids and excessive<br />

turbidity. Little by little the pollution is negatively<br />

affecting the natural environment in very serious<br />

ways. 9 These organizations have repeatedly warned<br />

the authorities that the levels <strong>of</strong> substances in<br />

rivers potentially dangerous to the environment and<br />

to people’s health may increase. But instead <strong>of</strong> paying<br />

due attention to this threat, the Government<br />

has persisted in its policy <strong>of</strong> promoting activities that<br />

are not sustainable and cause pollution – mining is<br />

a prime example – as a strategy for economic development.<br />

In fact, the Government has made a series<br />

<strong>of</strong> changes to the mining laws to make it easier for<br />

various transnational mining enterprises to operate<br />

in the country. 10<br />

Access to potable water<br />

According to a UN report on Panama’s progress<br />

towards the Millennium Development Goals (MDGs),<br />

large sectors <strong>of</strong> the population do not have access to<br />

potable water. This problem is most acute in rural<br />

areas, indigenous communities and some marginalized<br />

urban areas on the outskirts <strong>of</strong> cities where<br />

most <strong>of</strong> the people are <strong>of</strong> mixed race or <strong>of</strong> African<br />

descent. The situation as regards access to improved<br />

sewage facilities is similar, and rural and indigenous<br />

population groups suffer the consequences <strong>of</strong> this<br />

unequal distribution <strong>of</strong> services. 11<br />

8 L. Vidal Berrío, “Cobertura boscosa se reduce 50%,” Capital,<br />

(6 June 2011), .<br />

9 Teorema Ambiental, “Advierten sobre el riesgo de<br />

contaminación de agua en Panamá.”, Teorema Ambental,<br />

Revista Técnico Ambiental, .<br />

10 In a statement to the media the Minister <strong>of</strong> Trade said,<br />

“Adjustment (to the Mining Code) is needed as one <strong>of</strong> the<br />

countries interested in investing in the Donoso copper mine<br />

project in the province <strong>of</strong> Colón is the Republic <strong>of</strong> Korea, since<br />

numeral 1, article 4 <strong>of</strong> Decree Law 23, prohibits the granting <strong>of</strong><br />

mining concessions to foreign governments or countries.” In<br />

La Estrella.com.pa,(1 September 2010), .<br />

11 See: .<br />

TABLE 1<br />

Poverty rate by area (%)<br />

Details<br />

The MDG report also states that the precarious<br />

settlement populations are far from being able to<br />

satisfy their basic needs. Most are families in the grip<br />

<strong>of</strong> poverty and unemployment and have no other alternative<br />

in their search for a place to live. The report<br />

recognizes that there is a close connection between<br />

illiteracy and poverty that subsequently translates<br />

into other inequalities including limited access to<br />

health services and decent housing, gender inequality,<br />

reduced political participation and a lack <strong>of</strong> protection<br />

for the environment. 12<br />

According to a Levels <strong>of</strong> Life Survey (ENV) that<br />

was carried out in Panama in 2003, some 36.8% <strong>of</strong><br />

the population were living in poverty, defined as an<br />

income <strong>of</strong> less than USD 100 a month, and 16.6%<br />

were living in extreme poverty. In 2008 a similar<br />

study found there had been a slight improvement<br />

with poverty falling to 32.7% and extreme poverty<br />

to 14.4%. 13<br />

In urban areas where migrants from the countryside<br />

are swelling the population without government<br />

planning for urban growth, the overall poverty<br />

rate is 20%, and 4.4% <strong>of</strong> the people are in extreme<br />

poverty. In non-indigenous rural areas more than<br />

half the population (54%) is still living in poverty,<br />

and over one in five <strong>of</strong> these people (22%) are in extreme<br />

poverty. In indigenous rural areas the situation<br />

is extremely critical as nearly the whole population<br />

(98.4%) is in poverty, and the extreme poverty rate<br />

is 90%. 14<br />

Gender inequality and poverty<br />

If Panama is to overcome poverty and social exclusion,<br />

it has to tackle problems <strong>of</strong> social and gender<br />

inequality. Currently, women and children are more<br />

vulnerable to poverty than are men and have fewer<br />

opportunities to escape it. Poverty in general is high,<br />

but this is even more worrying when we consider its<br />

scope and impact by age brackets or ethnicity.<br />

12 Ibid.<br />

13 Ministerio de Economía y Finanzas de Panama, Encuesta<br />

Niveles de Vida, (Panama, Panama City: 2008).<br />

14 Ibid,,La Pobreza En Panamá, Encuesta de Niveles de Vida –<br />

2003 Principales. Resultados, Edición Revisada, (2005).<br />

<strong>Social</strong> <strong>Watch</strong> 155 Panama<br />

General poverty rate (%)<br />

1997 2003 2008<br />

Country total 37.3 36.8 32.7<br />

Urban 15.3 20.0 17.7<br />

Rural total 64.9 62.7 59.7<br />

Rural non-indigenous 58.7 54.0 50.7<br />

Rural indigenous 95.4 98.4 96.3<br />

Source : Encuesta de Niveles de Vida 2008. Ministerio de Economía y Finanzas, Panamá.<br />

Gender inequalities can be seen most clearly<br />

in the labour market. According to <strong>of</strong>ficial figures,<br />

women’s earnings were only 57% <strong>of</strong> men’s earnings in<br />

2009. Although women make up half the population a<br />

large percentage <strong>of</strong> women <strong>of</strong> productive age (51.7%)<br />

are not involved in the formal workforce, which is a<br />

major factor in the country’s poverty pr<strong>of</strong>ile. Women<br />

are still the most vulnerable group in the labour market,<br />

and most <strong>of</strong> the work they do is not paid at all. According<br />

to the 2009 household survey, some 80.9% <strong>of</strong><br />

the economically active male population had jobs, but<br />

only 48.3% <strong>of</strong> the economically active female population<br />

was gainfully employed. In 2009, the unemployment<br />

rate among women was 9.27%, which contrasts<br />

sharply to the 5.25% rate among men. 15<br />

Women’s situation is better in the education<br />

field. Statistics show they are an average <strong>of</strong> two percentage<br />

points ahead <strong>of</strong> men in access to schooling.<br />

Girls <strong>of</strong> the younger generations have greater access<br />

to education than their mothers and grandmothers<br />

had, but in some indigenous areas the schooling<br />

indicator for women is lower than that for men. 16<br />

Conclusion<br />

Panama’s approach to economic development ignores<br />

sustainability and has led to a degradation <strong>of</strong> its environmental<br />

resources while having only minimal impact<br />

in improving the lives and well-being <strong>of</strong> the majority<br />

<strong>of</strong> its people. Deforestation, <strong>desertification</strong>, water pollution,<br />

accessibility to potable water, and inadequate<br />

sewage facilities threaten the environment and the very<br />

health <strong>of</strong> the Panamanian people. Especially affected<br />

are migrants from the countryside in overcrowded settlements<br />

in towns and cities and the rural population,<br />

notably those in indigenous communities, which suffer<br />

from severe and sometimes extreme poverty. Women,<br />

particularly, have been hard-hit by economic development<br />

models that look first to benefit wealthy national<br />

elites and their international partners and investors. n<br />

15 MInisterio de Controlaria de Panama, Encuesta Continua<br />

de Hogares 2009, .<br />

16 Atlas de Desarrollo Humano y Objetivos del Milenio, (2010).

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